MOEX Russia Index Hits Three-Year Low on Broad-Based Sell-Off

Russian equities fell sharply during Friday's trading session, with the benchmark MOEX Russia Index closing down 2.13% to reach a new three-year low. The decline was driven by broad-based weakness, particularly in the country's crucial resource-oriented sectors.

Mining and Energy Stocks Lead Declines

The sell-off was most pronounced in the Mining, Oil & Gas, and Power industries, according to market data from the Moscow Exchange. Market breadth was overwhelmingly negative, with 175 stocks falling compared to just 65 advancing issues, while 10 remained unchanged.

Several major companies experienced steep losses, hitting multi-year lows:

• Polyus PJSC (PLZL) was the worst performer of the session, plummeting 10.79% to a five-year low.
• AK ALROSA PJSC (ALRS), a major diamond producer, declined 3.23%, falling to an all-time low.
• RusHydro PJSC (HYDR) saw its shares drop 2.76%, also marking a five-year low.

Ad

In contrast, a few stocks bucked the negative trend. Steel and mining company Severstal PJSC (CHMF) was a top performer, rising 1.00%.

Volatility Spikes and Ruble Weakens

Investor uncertainty appeared to be on the rise, as reflected by the Russian Volatility Index (RVI). The RVI, which measures the implied volatility of MOEX Russia Index options, climbed 1.05% to 46.01, a new six-month high.

In the currency markets, the Russian ruble weakened against major currencies. The USD/RUB pair rose 1.52% to 77.31, while the EUR/RUB pair gained 0.96% to 87.87. Meanwhile, key commodity prices also softened, with Brent crude for September delivery falling 0.38% to $76.01 a barrel.